People's Democracy

CITU Denounces Proposal To Change 

Evaluation Parameters Of CPSEs

THE CITU strongly denounced the government’s proposal to change evaluation parameters of performance of Central Public Sector Enterprises (CPSEs) as stated by the minister of heavy industries and public enterprises in the Consultative Committee meeting held on November 14. The proposed changes are disastrously designed to make the stock-market status of the company to decide its fate.

The CITU pointed out that the proposed change in parameters makes the stock market image of a particular company dominant on its physical performance parameters. Addition of parameters pertaining to market capitalisation of the company and change in the same over the previous year and substitution of the parameter of "earning Per Share" (EPS) by Price Earning Ratio (PER), which is linked with the stock market price of the share, will make the evaluation of a particular company’s status and ranking wholly dependent on the stock market image of the company which is susceptible to manipulation. If the proposed changes are accepted it will be utilised to degrade the Navaratna PSUs by corporate lobby paving way for creeping privatisation of PSUs, felt the CITU.

Since the failure of the government’s plan to disinvest NALCO & NLC due to the united opposition of the employees, government has been engaged in a backdoor manoeuvring in its single-point agenda of disinvestments through deceit and deception, charged the CITU. The present move is one such retrograde engagements. There had been reports of finance ministry putting pressure on Department of Public Enterprises to change the parameters of performance by linking it with stock market, which is pivotal for a sensex-oriented bubble economy.

Besides, the present move is in compete contravention of the government’s objectives of public sector as stated in the Public Enterprises Surveys presented annually in parliament. The CITU stated it will not allow the public sector navratnas like BHEL and SAIL to be replica of Vedantas and Jet Airways.

"The CITU will oppose tooth and nail such sinister attempt to bring down the performance parameter of a CPSE on basically flawed premises to enable finance minister’s quest for disinvestments. The CITU calls upon the working class, parliamentarians and political parities to force a stop on this game of continuous tinkering of public sector structure".